Out Fox The $treet

King Digital continues to struggle to repeat the success of mega-hit Candy Crush Saga. Though the stock offers an attractive value, it isn't likely to traded positively until the negative trends reverse. Investors should patiently watch the stock for a better entry point and ignore the market that value doesn't exist in the mobile-game sector. The mobile game industry continues to get a bad rap. The latest quarterly results from King Digital Entertainment (NYSE: KING ) only seem to enhance that negative perception. What the market really misses is that stocks like King Digital and Zynga (NASDAQ: ZNGA ) went public after a hit game or two spurred incredibly high valuations and revenues that weren't sustainable in the short run. Read the full article on Seeking Alpha. Disclosure: Long ZNGA. Please review the disclaimer page for more details. 

Mobile game developers are struggling now, but investors shouldn't overlook the valuation prospects when the stocks turn around. Electronic Arts and Activision Blizzard don't offer any growth, yet the market is rewarding these stocks higher valuations. Investors should review how the console game developers turned around weak prospects to huge stock gains before dismissing the stocks focused on mobile games. Everybody knows that videogame players are shifting to mobile, but ironically the console game developers continue to reign supreme. Typically, the small growth companies garner the highest valuation multiples, but that isn't the case in the videogame developer sector. Read the full article on Seeking Alpha. Disclosure: Long GLUU and ZNGA. Please review the disclaimer page for more details. 

The initial success of the Kim Kardashian game has surprised even this owner of Glu Mobile ( NASDAQ: GLUU     ) stock. It's another sign that the small game developer continues to advance its mobile gaming platform mostly focused on action shooter games such as the previous successful Deer Hunter 2014 .   The staying power of Kim Kardashian could propel the game, and the stock, into the upper echelon of gaming stocks that includes King Digital Entertainment plc ( NYSE: KING     ) and Zynga ( NASDAQ: ZNGA     ) that sport much larger stock valuations. Read the full article here . Disclosure: Long GLUU and ZNGA. Please review the disclaimer page for more details. 

Following an investor presentation -- on the back of news of more executive departures -- Zynga ( NASDAQ: ZNGA     ) shares plunged to lows not seen in nearly a year. While investors shouldn't attempt to time the market, they should take advantage of large moves in either direction to modify positions. As long as an investing thesis hasn't changed, investors can use their acquired knowledge of the company to take advantage of a large, outsized market move that happens too often these days. Anybody following Zynga over the last year knows that the company is in the midst of finishing up a turnaround led by CEO Don Mattrick. The company has shown a promising reversal in user trends and monetization metrics and is now embarking on a path toward growth. In the midst of all these improvements, investors became overly cautious on the mobile and social gaming sector following the disappointing IPO of King Digital Entertainment ( NYSE: KING     ) . Rea...

The recent results of Glu Mobile ( NASDAQ: GLUU     ) suggest the mobile game developer is finally hitting full stride. The company solidly smashed previous guidance for a second straight quarter and now looks more likely to reach its high goals for the rest of the year and into 2015. Possibly more important, the company has turned a profit in the last couple of quarters, proving that the concept can deliver. The mobile game sector has been under pressure due to the weak IPO from King Digital Entertainment ( NYSE: KING     ) . While King Digital and Zynga ( NASDAQ: ZNGA     ) before it were plagued by one-hit wonders that the companies couldn't repeat, Glu Mobile is starting to generate solid repeatable results based on small hit franchises. Read the full article here . Disclosure: long GLUU and ZNGA. Please review the disclaimer page for more details

The biggest complaint with the recent IPO of King Digital Entertainment ( NYSE: KING     ) was the inability to predict future revenue streams. In the case of King Digital, the big hit game of Candy Crush Saga fundamentally distorted future results. If the company and industry can't guarantee repeated success, then the market will have a difficult time providing high valuations to the mobile and social game developers. In the case of Zynga ( NASDAQ: ZNGA     ) , new CEO Don Mattrick made the concept of sustainable franchises a cornerstone of his arrival at the large game developer. It mirrors his past experience at Electronic Arts ( NASDAQ: EA     ) , where the focus was on repeatable game franchises that brought in consistent revenue streams in the way of large console hits. The ability to predict mobile and social success is very difficult with the diluted playing field and relatively easy entry. Read the full article here . ...